China ties US farm deal to tariff cuts

China stated on Thursday that it is prepared to purchase US farm goods, but only if the two nations finalize an agreement on reciprocal tariff cuts. The commerce ministry made the announcement during a regular press briefing, placing the deal on hold until specific trade terms are met.

The proposal follows a September summit in Washington between President Donald Trump and President Xi Jinping. The two leaders outlined a $60 billion package of mutual tariff reductions. This package includes approximately $17 billion worth of US farm goods that China imported in 2024. However, the final details of this plan have not yet been settled.

Huang Ling, a spokesperson for the commerce ministry, said China hopes the United States will work with Beijing to create favorable conditions for agricultural trade. She cited measures such as jointly lowering tariffs, reducing non-tariff barriers, and expanding market access as necessary steps. The White House announced in May that Beijing had agreed to buy $17 billion of US agricultural goods annually starting in 2026. This target is adjusted on a prorated basis for the current year.

These purchases are separate from a commitment made in October 2025 to buy US soybeans. China is currently on track to meet that specific soybean target. However, according to a Reuters analysis, China bought only $7.2 billion of other US agricultural products, including meat and corn, between January and September 2026. This figure represents the lowest import level for that period since 2019, the peak of the first US-China trade war.

Uncertainty remains regarding when the timeline for the $17 billion non-soy deal officially begins. The White House has not clarified if the clock started with its May announcement or will begin only after China’s proposed tariff cuts are finalized. This ambiguity has fueled doubts about whether imports will rise sharply in the coming months.

Traders have told Reuters that lower tariffs are needed to make large-scale purchases commercially viable. The slow pace of buying adds to the pressure on US farmers, who are already dealing with high fuel costs. The current situation leaves the full value of the agricultural trade agreement in limbo until the tariff negotiations are resolved.